Lois Kent Has Owned and Managed the Operations of a Small

question 151

Essay

Lois Kent has owned and managed the operations of a small chain of sporting goods stores for the past two years.She has asked her administrative assistant to provide her with some annual reports of other companies that sell sporting goods as well as some published reports showing norms for the sporting goods industry so that Lois can compare the financial ratios of her company with those of other companies that sell sporting goods.Discuss the limitations of using comparisons with other companies and industry norms,which Lois needs to remember.

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Definitions:

Constant-Sum Game

A situation in game theory in which the sum of the participants' gains and losses is constant, meaning what one gains, another loses.

Resistance Point

In negotiations, the least favorable point at which one will accept a deal, beyond which the party would prefer to walk away from the negotiation.

Labor Negotiations

The process by which employers and unions discuss and agree on the terms of employment, including wages, working hours, and working conditions.

Costing Methodology

A systematic approach used in accounting to determine the cost associated with a product or service, for the purpose of financial reporting, decision making, or controlling.